Hospitality Industry (General) Award 2020 - A Simple Guide for Your Business

Feb 9

Who is Covered?

The Award groups employees into different streams based on their daily tasks. These streams include:

Food & beverage
Kitchen
Guest Services
Administration
Security
Leisure Activities
Stores
Maintenance & trade
Managerial (hotels)
Casino

Within these streams, employees are assigned a "Level" (from Introductory through to Level 6) based on their skills, qualifications, and responsibilities.

Why Correct Classification Matters

An employee’s Level determines their minimum legal pay rate. A common industry error is placing a staff member at a lower level than their duties require. For example, any cook holding a trade certificate is considered a "qualified tradesperson" and must be classified at Level 4 or higher.

Classification must be based on the actual duties performed every day, rather than just a job title.

Full-Time Employees

Full-time employees are generally engaged to work an average of 38 ordinary hours per week. These hours are flexible and can be averaged over a two or four-week period to suit the business.

• Daily Limits: You can’t work fewer than 6 hours or more than 11.5 hours (excluding meal breaks) in a single day.

• The "Long Shift" Rule: If you work more than 10 hours for three days in a row, you are entitled to a 48-hour break immediately after.

No employee is to work more than 10 days in a row without a rostered day off.

Part-Time Employees

Part-time staff have a regular pattern of work, ranging from 8 to 38 hours per week.

• The Agreement: At the start of the job, the employer and employee must agree in writing on a guaranteed number of hours and when the employee is available to work.

• Minimum Engagement: Every time a part-time employee is rostered, they must be given (and paid for) at least 3 hours of work. Like full-timers, their maximum daily limit is 11.5 hours.

Casual Employees

Casuals are hired on an as-needed basis, but there are still clear boundaries on their time.

• Maximum Hours: A casual can work up to 12 hours per day/shift and a maximum of 38 hours per week.

• Minimum Engagement: This is the big one for casuals: you must be paid for at least 2 consecutive hours of work every time you are called in, even if the work finishes earlier.

Special "Minimum Stays"

Sometimes the "minimum engagement" changes depending on the day:

• Public Holidays: If a full-time or part-time employee works on a public holiday, they must be paid for at least 4 hours, while casuals must be paid for at least 2 hours.

• Rostered Days Off (RDO): If a full-time or part-time worker is asked to come in on their RDO, they must be paid for at least 4 hours at overtime rates.

Resting and Recharging

The Award ensures everyone gets enough sleep between shifts:

• The 10-Hour Rule: Generally, there must be a 10-hour break between finishing work one day and starting the next. (This can drop to 8 hours when rosters are changing over).

• Split Shifts: If you work a split shift, the total "spread of hours" (from your first start to your last finish) cannot exceed 12 hours.

• Juniors: If you are under 18, you cannot be required to work more than 10 hours in a single shift.

Breaks

Unpaid meal breaks must be taken after the first 2 hours of work and within the first 6 hours of your shift.

Employers must make reasonable efforts to ensure your breaks are spread evenly throughout your shift.

The "No Break" Penalty

If you work a shift longer than 6 hours and your employer does not allow you to take your unpaid meal break, they have to pay for it.

• Penalty Rate: You must be paid an additional 50% of your ordinary hourly rate extra.

• Duration: This higher rate starts 6 hours after you began work and continues until you are either given the break or your shift ends.

The Right to Disconnect

In a new update, employees now have the legal right to disconnect. This means you can generally refuse to monitor or respond to work emails or calls outside of your paid hours, unless your refusal is considered "unreasonable"

The Essentials of Pay, Penalties, and Allowances

• Minimum Pay: Rates differ for full-time, part-time, and casual employees. Casuals receive a 25% loading to compensate for not having leave entitlements.

• Penalties: Employees earn more for working "unsociable" hours, including Saturdays, Sundays, and Public Holidays. Additionally, a specific hourly penalty applies to any hours worked between 7:00 pm and 7:00 am on Monday to Friday.

• Allowances: Extra payments may be required for specific costs, such as when cooks provide their own tools or when staff must launder a required uniform.

Common Compliance Traps: What Employers Often Get Wrong

• Part-time Agreements: You must have a written agreement at the time of engagement that specifies the employee's guaranteed hours and their availability.

• Unpaid Breaks: For any shift longer than 6 hours, you must ensure staff take an unpaid meal break of at least 30 minutes.

• Classification Creep: Employees started at the "Introductory Level" must move to "Level 1" once they have completed three months of training.

Practical Tips for Staying Compliant

• Always provide new employees with a copy of the Award and the Fair Work Information Statement.

• Keep exact records of when employees start and finish work, including all break times.

• Review employee levels annually or whenever their core duties change.

A compliant workplace builds trust with your team and safeguards your business.If this raised questions for your business, FiveSeven can help review your approach and identify any gaps before they become issues.

The information above forms part of our Understanding Your Award series and provides a high-level overview only. Further obligations may apply depending on your business and workforce. This Information is current at the time of publication Jan 2026. Workplace laws and awards may change.